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Waivers Subrogation

White and Williams LLP

Not a Waiver for All: Maryland Declines to Apply Subrogation Waiver to Subcontractors

In Lithko Contr., LLC v. XL Ins. Am. Inc., No. 31, Sept. Term, 2023, 2024 Md. LEXIS 256, the Supreme Court of Maryland considered whether a tenant who contracted for the construction of a large warehouse facility waived its...more

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Court of Appeals Confirms Partial Lien Waivers Do Not Waive Lien Rights

In a recent decision, the North Carolina Court of Appeals held that a general contractor’s execution of partial lien waivers did not prejudice a supplier’s lien rights on the construction project. The case is Atlantech...more

White and Williams LLP

Oh, THAT Contract: Ohio Court Bars Plaintiff’s Negligence Claim Based on Subrogation Waiver and Accelerated Limitations Period in...

In Ohio Sec. Ins. Co v. Brakefire, Inc., CA. No. 5:24-cv-267, 2024 U.S. Dist. LEXIS 97606 (Brakefire), the United States District Court for the Northern District of Ohio considered whether a subrogating plaintiff’s negligence...more

White and Williams LLP

Subrogation Waiver Unconscionable in Residential Fuel Delivery Contract

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In a matter of first impression, the Superior Court of Connecticut (Superior Court), in American Commerce Ins., Co. v. Eastern Fuel Corp., No. CV-206109168-S, 2024 Conn. Super. LEXIS 380, held that a waiver of subrogation...more

White and Williams LLP

Beware: A Security Company’s Contract May Eliminate Your Causes of Action

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xIn Jewels by Iroff, Inc. v. Securitas Tech. Corp., No. 1:23-CV-556-TWT, 2023 U.S. Dist. LEXIS 172391, a Georgia federal court addressed a suit against a security/alarm company arising from a break-in at a jewelry store where...more

White and Williams LLP

Insurer Springs a Leak in Its Pursuit of Subrogation

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In Nationwide Prop & Cas. Ins. Co. v. Fireline Corp., No. 1:20-cv-00684, 2023 U.S. Dist. LEXIS 104241, the United States District Court for the District of Maryland (District Court) considered whether the events giving rise...more

Lowenstein Sandler LLP

Mind the Back Door: A Discussion of Insurer Subrogation Rights and Contractual Waiver of Subrogation Provisions

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In this episode, the hosts explain waivers of insurers’ subrogation rights: what are they, what are the risks, who is bound by them, and how to obtain a waiver from an insurance company. They also discuss specific examples in...more

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Waiver of Subrogation and Lack of Contractual Privity Bars Commercial Tenants’ Claims

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In United States Automatic Sprinkler Corporation v. Erie Insurance Exchange, et al., No. 2SS-CT-264, 2023 Ind. LEXIS 105, the Supreme Court of Indiana (Supreme Court) reversed an order of the trial court that denied a motion...more

White and Williams LLP

No Signature, No Problem: Texas Court Holds Contractual Subrogation Waiver Still Enforceable

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In Chubb Lloyds Inc. Co. of Tex. v. Buster & Cogdell Builders, LLC, No. 01-21-00503-CV, 2023 Tex. App. LEXIS 676, the Court of Appeals of Texas, First District (Court of Appeals) considered whether the lower court properly...more

White and Williams LLP

Michigan Court Waives Goodbye to Subrogation Claims Except as to Gross Negligence

In Ace American Insurance Company, et. al. v. Toledo Engineering Co., Inc., et. al., No. 18-11503, 2023 U.S. Dist. LEXIS 15222 (Ace American), the United States District Court for the Eastern District of Michigan determined...more

White and Williams LLP

Florida Court Puts the Claim of Landlord’s Insurer In The No-Fly Zone

In United States Aviation Underwriters v. Turnberry Airport Holdings, LLC, No. 3D22-270, 2023 Fla. App. LEXIS 1207 (U.S. Aviation), the Court of Appeal of Florida, Third District (Appellate Court) considered whether the...more

Willcox & Savage

You've Heard of Medicare and ERISA Liens, but What About the Federal Medical Care Recovery Act? The Federal Law Controlling the...

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Claims adjusters are frequently warned to identify and resolve Medicare and Employee Retirement Income Security Act (“ERISA”) liens before finalizing settlements in personal injury claims. But there is another federal law...more

White and Williams LLP

Waive Your Claim Goodbye: Louisiana Court Holds That AIA Subrogation Waiver Did Not Violate Anti-Indemnification Statute and...

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In 2700 Bohn Motor, LLC v. F.H. Myers Constr. Corp., No. 2021-CA-0671, 2022 La. App. LEXIS 651 (Bohn Motor), the Court of Appeals of Louisiana for the Fourth Circuit (Court of Appeals) considered whether a subrogation waiver...more

White and Williams LLP

Tenants Underwater: Indiana Court of Appeals Upholds Privity Requirement for Property Damage Claims Against Contractors

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In United States Automatic Sprinkler Corp. v. Erie Ins. Exch., et al., No. 21A-CT-580, 2022 Ind. App. LEXIS 87 (Automatic Sprinkler), the Court of Appeals of Indiana (Court of Appeals) considered whether there is a privity...more

White and Williams LLP

Waive It Goodbye: Despite Evidence to the Contrary, Delaware Upholds an AIA Waiver of Subrogation Clause

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Subrogation professionals have always been looking for ways to defeat onerous waiver of subrogation provisions in contracts signed by insureds. However, even when contracts are unsigned, if there is intent when the contract...more

Troutman Pepper

Maryland Court Holds No Right of Contribution Where A Waiver of Subrogation Precludes Common Legal Responsibility

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Gables Construction, Inc. v. Red Coats, Inc., No. 23, 2020 BL 193791, 2020 MD LEXIS 264 (Md. May 26, 2020) - Upper Rock II, LLC (“Upper Rock”) contracted Gables Construction, Inc. (“GCI”) to construct a multi-building...more

White and Williams LLP

Virginia Allows Condominium Association’s Insurer to Subrogate Against a Condominium Tenant

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In Erie Insurance Exchange v. Alba, Rec. No. 190389, 2020 Va. LEXIS 53, the Supreme Court of Virginia considered whether the trial court erred in finding that a condominium association’s property insurance provider waived its...more

Cozen O'Connor

Implied Coinsured? Subrogation Actions Against Condominium Tenants

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When considering a claim’s subrogation potential, insurance carriers are often confronted with contractual waivers of subrogation that potentially bar the claim. One of the most common waivers carriers face are those...more

Gray Reed

Obscure But Important Surety and Guarantee Rules

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Texas surety law contains obscure procedural rules that can have outsized consequences. Chapter 43 of the Civil Practice and Remedies Code is an important example....more

White and Williams LLP

Wisconsin Supreme Court Holds that Subrogation Waiver Does Not Violate Statute Prohibiting Limitation on Tort Liability in...

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In Rural Mut. Ins. Co. v. Lester Bldgs., LLC 2019 WI 70, 2019 Wisc. LEXIS 272, the Supreme Court of Wisconsin considered whether a subrogation waiver clause in a construction contract between the defendant and the plaintiff’s...more

White and Williams LLP

“I Didn’t Sign That!” – Applicability of Waivers of Subrogation to Non-Signatory Third Parties

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In Gables Construction v. Red Coats, 2019 Md. App. LEXIS 419, Maryland’s Court of Special Appeals considered whether a contractual waiver of subrogation in the prime contract for a construction project barred a third party –...more

White and Williams LLP

New Jersey Court Washes Away Insurer’s Waiver of Subrogation Arguments

Subrogating insurers often address waiver of subrogation clauses in the form contracts drafted by the American Institute of Architects. In ACE Am. Ins. Co. v. Am. Med. Plumbing, No. A-5395-16T4, 2019 N.J. Super. LEXIS 45...more

White and Williams LLP

Northern District of Mississippi Finds That Non-Work Property Damages Are Not Subject to AIA’s Waiver of Subrogation Clause

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In recent months, the Northern District of Mississippi has grappled with how to interpret waivers of subrogation in American Institute of Architects (AIA) construction industry contracts and, specifically, how they apply to...more

White and Williams LLP

Connecticut Supreme Court Holds That Landlord’s Insurer Can Pursue Equitable Subrogation If Lease Requires Tenant Have Insurance...

In Amica Mutual Insurance Company v. Muldowney, 328 Conn. 428 (2018), the Connecticut Supreme Court considered whether a landlord’s insurance carrier could subrogate against the landlord’s tenants for property damage when the...more

Cozen O'Connor

Sometimes It’s Hard to Waive Subrogation: Pacific Indemnity v. Deming

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According to the recent decision of the U.S. Court of Appeals for the First Circuit in Pacific Indemnity Company v. Deming, 2016 WL 3607028, 2016 U.S. App. LEXIS 12374 (July 5, 2016) common contractual provisions that...more

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